Legal Question in Real Estate Law in California

I am a California licensed Mortgage Loan Originator (MLO) who submitted my client's loan to a lender who after an agonizing 4 months was able to close the loan even after the lender dropped the ball on a myriad of occasions. The loan recorded 3 weeks ago today and the lender still has not sent me my commission for this loan. They keep making excuses and told me that the loan still has not been insured but they would send me my check. If they continue to delay my check should I file a lawsuit and/or contact the District Attorney in the county where the lender is located? Would their actions be considered Embezzlement, Conversion, Mortgage Fraud or Fraud? This is the first and last time that I will use this lender.


Asked on 4/06/12, 10:41 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I'd say your approach should depend upon the results you want. If your main interest is in getting paid, I'd keep the matter in the civil arena and sue the guy. If you want him punished, go to the cops or the D.A. (however, that seems premature at this point). Embezzlement sounds like it would be the right crime to charge, but if you go that route, explain to the D.A. or police how money flows in your business and let them decide what crime was committed (if any at this stage).

A civil action might allege breach of contract, and possibly conversion and/or fraud, depending upon additional facts

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Answered on 4/07/12, 3:36 pm


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